Question

4. Sheehan works for Andy Company and is a superior sales guy. His total compensation this year is $400,000. Andy sponsors an integrated profit sharing plan with a base percentage of 5% and a maximum excess percentage. It uses the current wage base as the integration level. What is the excess percentage that will be applied Sheehan's compensation above the integration level? a. 5%. b. 5.7%. c. 10%. d. 10.7%. 5. Jacques, who is age 45, has just resigned from his current job. He worked for Ace, which sponsors a cash balance plan and a standard 401(k) plan. Each of the plans uses the longest permitted vesting schedule and both plans are top heavy. He has a balance of $40,000 in the cash balance plan, has deferred $20,000 into the 401(k) plan and has employer matching contributions of $10,000. If he has been employed for three years, but only participating in the plans for the last two years, how much does he keep if he leaves today? a. $20,000. b. $30,000. C. $60,000. d. $64,000.

Answer 1

Answers @. Given information, .. base percentage = 54 "The Cavess per colage - base percentage = 51. So, . Erless percentage usill be twile. ithe base percentage always theet is, (5*0]%. = 10:46. : slechan will receive saf, from o to wage base limit # 139,900 2012) 104. on income above the wage base uplo Covered Compensation limit do $280.000 (2014) Hence, Total contribution by the company for sheehan - [480,000 – $132,900]*co:9.7+($132,480x5t.) - (147,100 x10'], ) + (132,900 X5 ).) = $14710+6,645 - $ 21,355

SO) isto del confidenten by the company for thechan pol,a.cf Thes, The cox cess percentage applied for Sheehan's compensation is 10%. SO1 .. option is correct answey.